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A bank divided: Yemen's financial crisis hits food imports

Ersin Çelik
16:13 - 20/12/2018 Thursday
Update: 16:15 - 20/12/2018 Thursday
REUTERS
File photo
File photo

RESERVES DWINDLE

The United Nations said Yemen needs billions of dollars in external support to avoid another currency collapse.

The central bank is struggling to pay public-sector wages as foreign exchange reserves dwindle. It has access to a Federal Reserve account of $200 million while around 87 million pounds are frozen in a Bank of England account. The Bank of England declined to comment.

Authorities sought to boost liquidity last year by printing money. Since then the rial has halved in value.

The United Nations and the International Monetary Fund are working to reunite the rival central banks.

The chairman of Yemen's Gulf of Aden Ports, Mohammed Alawi Amzerbah, said around 85 percent of goods arriving in Aden can make it to Houthi-held areas. But a day later, a celebration at a location two hours from Aden to launch a road to transport goods northwards was cancelled for security reasons.

Yemen's problems go further than importing food. In Aden's fish market onlookers cheered as a fisherman displayed his catch, a small shark, but customers were scarce.

"Before, you could buy that shark for 2,000 rials. Now you need 7,000 rials," said Nasser Bureik Nasser, a fisheries ministry employee.

#yemen
#central bank
#divided
5 years ago